Intel Announces Multi-Billion-Dollar Investment in Next-Generation Manufacturing in U.S.

SANTA CLARA, California Intel Corporation announced that the company will invest between $6 billion and $8 billion on future generations of manufacturing technology in its American facilities. The action will fund deployment of Intels next-generation 22- nanometer (nm) manufacturing process across several existing U.S. factories, along with construction of a new development fabrication plant (commonly called a fab) in Oregon. The projects will support 6,000 to 8,000 construction jobs and result in 800 to 1,000 new permanent high-tech jobs. Todays announcement reflects the next tranche of the continued advancement of Moores Law and a further commitment to invest in the future of Intel and America, said Intel President and CEO Paul Otellini. The most immediate impact of our multi-billion-dollar investment will be the thousands of jobs associated with building a new fab and upgrading four others, and the high-wage, high-tech manufacturing jobs that follow. The PC industry is achieving a significant milestone this year with 1 million PCs shipping per day. The upgraded fabs create the capacity for the continued growth of the PC market segment and additional computing markets Intel is addressing, such as mobile and embedded computing. The new investments reinforce Intels leadership in the most advanced semiconductor manufacturing in the world. Intels brand-new development fab in Oregon to be called D1X is scheduled for R&D startup in 2013. Upgrades are also planned for a total of four existing factories in Arizona (known as Fab 12 and Fab 32) and Oregon (known as D1C and D1D). Intel makes approximately 10 billion transistors per second. Our factories produce the most advanced computer technology in the world and these investments will create capacity for innovation we havent yet imagined, said Brian Krzanich, senior vice president and general manager of Intels Manufacturing and Supply Chain. Intel and the world of technology lie at the heart of this future. Contrary to conventional wisdom, we can retain a vibrant manufacturing economy here in the United States by focusing on the industries of the future. While Intel generates approximately three-fourths of its revenues overseas, it maintains three-fourths of its microprocessor manufacturing in the United States. This new investment commitment also allows the company to maintain its existing manufacturing employment base at these sites. This new capital expenditure follows a U.S. investment announcement made in February 2009 to support state-of-the-art upgrades to its manufacturing process. Those upgrades resulted in 32nm process technology which has already produced computer chips being used today in PCs, servers, embedded and mobile devices around the world. Intels first 22nm microprocessors, codenamed Ivy Bridge, will be in production in late 2011 and will boost further levels of performance and power efficiency. By continuing to advance manufacturing process technology, additional features and functions can be integrated and enable devices with sleeker designs, higher performance and longer battery life at lower costs for users. Intel Investing in Arizona Intel established a presence in Arizona in 1979 and began operations in Chandler the following year in 1980. There are approximately 9,700 employees, making it the 2ndlargest Intel site and the largest employer in Chandler, Arizona. Since 1996 Intel has invested over $12 billion in high-tech manufacturing capability in the state and spends over $450 million each year in research and development.Intel contributes more than $2.6 billion in economic impact to Arizona including more than 20,000 additional jobs as a result of our operations here.Arizona is home to two high volume manufacturing facilities, Fab12 and Fab32. The Arizona manufacturing facilities incorporate a number of energy and water conservation measures that characterize Intel's long track record of environmental stewardship. Fab32, the companys latest and most advanced manufacturing facility, is in the process of seeking LEED certification which will be Intels first LEED certified building for an existing facility. Intel Arizona provides two full service onsite employee healthcare facilities catering to Intel employees and a state-of-the-art fitness facility that utilizes Intel Embedded processors. Intel in the Community In2009, more than 3500 employees volunteered in area schools and non-profits. Through Intels matching grant program, which matches employees volunteer time with $10/per hour to organizations, the company donated over $620,000 back to the community. Intel was awarded the highest volunteer honor in the state of Arizona, the 2009 Governors Volunteer Service Award in the large company category and the 2010 National Governors Association Public Private Partnership award for its work with the Arizona Department of Education to provide technology training for teachers. Arizona Quick Facts Employment: 9,700 Capital Investment: $12 billion in manufacturing since 1996 United Way contribution: $6.6M Volunteer Hours: 127,000 hours in 2009